Service Delivery at Finance Ministry affected following Gen Z demonstrations

Kathmandu: The Ministry of Finance has reported significant disruptions to its service delivery system following incidents of vandalism and arson during the recent Gen Z demonstrations.

Multiple government offices including the Ministry itself, Customs and Tax Offices, the District Treasury Controller Office and other affiliated agencies were vandalized and set on fire. As a result, these entities are currently limited to providing only basic services.

Efforts are now underway to assess the extent of the damage and gradually restore services. According to Ministry Spokesperson Tanka Prasad Pandey, some sections under the Budget Division sustained serious damage, while other units are in a position to resume services immediately.

He confirmed that three major software systems and their associated data remain safe. The Ministry also reported severe damage to its vehicles: 25 cars were completely destroyed, about 20 were partially damaged, and 40 motorcycles were reduced to ashes.

Customs services have partially resumed. At the Inland Revenue Department, only online services are currently operational. According to Madan Dahal, Department’s Director General, offices within the Kathmandu Valley are ready to resume full services upon government instruction.

However, this is not the case for many offices outside the Valley, which suffered extensive damage. Taxpayer service offices in Damak, Itahari, Biratnagar, Lahan, Janakpur, Hetauda, Birgunj, Simara, Damauli, Pokhara, Bhairahawa, Butwal, Nepalgunj, Dadeldhura, and Dhangadhi were reportedly destroyed by fire. Despite structural damages, the Automated System for Customs Data (ASYCUDA) remains operational, ensuring continuity in customs clearance services.

The Corola customs point towards China is expected to resume operations tomorrow. Widespread damage has also forced the shutdown of most government accounting systems. According to Om Prasad Rijal, Information Officer at the Financial Comptroller General Office, only the Revenue Management Information System (RMIS) is currently functional.

The District Treasury Office in Kailali was completely destroyed, while offices in Makwanpur, Biratnagar, Tripureshwar, and several other areas also sustained damage.

Assessment of losses is ongoing. Key financial systems including the Sub-national Treasury Regulatory Application (SUTRA), Treasury Single Account System (TSA), and Computerized Government Accounting System (CGAS) are yet to be restored. “We are waiting for instructions from the new government to proceed ahead,” Rijal said.